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Fewer Auto Loan Losses
According to the Fitch Ratings, the
number of delinquencies and losses on
auto loans in the United States have
dropped 30% for the month of April. They
said that a lot of this has to do with
the fact that many people have gotten
their tax refunds in and have been able
to make payments on their auto loans.
They said that there is the added
benefit if better recovery rates on
repossessed vehicles. They said that
they are finding that the economy is
doing better than what it was, and
although they are not really near where
they need to be, any recovery for the
economy is a recovery for every
industry.
They said that compared with last year,
the status of auto loan delinquencies is
much better. They said that the number
of people that are 60 days or more
delinquent had dropped 20% during April,
and the annual net loss for auto loans
had dropped 15%. They said that their
numbers were the lowest they have seen
since June of 2007. Further, they said
that the economy was at its weakest in
2007 and 2008, and as the economy
improves, they are going to see even
better numbers in the auto loan
industry.
They said that there is the added effect
of higher used car prices and better
rates on used auto loans. These will
both help with their bottom lines.
However, they did caution that although
these rates are better than they were,
if the number of delinquencies do not
increase dramatically that they will
continue to be a concern for asset
backed securities.
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2010 Archives
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